| ▲ | catigula 2 days ago | |
Think about what you're saying. 100k invested in the market - untouched - will decay a certain percentage a year in purchasing power due to inflation but will outpace it due to returns. How many years until that cash windfall changes your life? The answer is "indefinite" years, especially if you're actually using the funds to do anything, i.e. withdrawing them and preventing compound interest. In 20 years you might be able to get into a home with the cash if you've absolutely touched not even a penny of it but A. you likely haven't and B. you probably still can't get into a home, 20 years later. Of course, the number is fake, nobody is handing out 100k. | ||
| ▲ | Jensson 2 days ago | parent | next [-] | |
> Of course, the number is fake, nobody is handing out 100k. Lotteries are, there are studies on those. | ||
| ▲ | bko 2 days ago | parent | prev [-] | |
> 100k invested in the market - untouched - will decay a certain percentage a year in purchasing power due to inflation but will outpace it due to returns. What's your point? That inflation is a thing? The S&P 500 has delivered an average annual return of 10.33% since 1957, but when adjusted for inflation, the real return drops to 6.47%. > In 20 years you might be able to get into a home with the cash Why are you hung up on owning a home? There are 100 other things you could do w/ a windfall with a better return than buying a home. Invest in education is probably one of the more high return things you can do w/ a windfall https://www.investopedia.com/ask/answers/042415/what-average... | ||